Naija banks don raise N4.65 trillion, local investors show strong hand

Wetin dey happen for Naija banking sector don finally wrap up, and the gist sweet well well. Central Bank of Nigeria don announce say the big bank recapitalisation wey dem start since March 2024 don finish, and the numbers dey talk for themselves. Na total of N4.65 trillion wey these banks don gather together to make their base strong. You hear am? N4.65 trillion! That kind money no be beans at all.

But the real koko for inside this matter na how Naija people themselves show say dem believe for our own banks. According to CBN, local investors provide 72.55% of all the money wey dem raise. That one mean say for every N100 wey enter bank accounts, Naija people bring N72.55. Foreign investors bring the remaining 27.45%. This one show say our people still get confidence for our financial system, even with all the wahala wey dey ground.

CBN Governor, Olayemi Cardoso, yarn say this recapitalisation don make banks for Nigeria stronger pass before. “The programme don reinforce the resilience of the financial system,” Cardoso talk. “And e don make sure say the system dey well-positioned to support economic growth and withstand any shock wey fit come from inside or outside the country.”

Now, make we break am down small. Out of all the banks wey dey Nigeria, 33 don meet the new capital requirements wey CBN set. The requirements na like this: banks with international license need N500 billion, national license banks need N200 billion, and regional banks need N50 billion. For non-interest banks, national authorization need N20 billion while regional need N10 billion.

Some banks still dey under regulatory and judicial process, but CBN don assure Nigerians say all banks dey fully operational. No customer go suffer or lose access to their money because of this exercise. The whole thing don finish without any major disruption to banking services across the country.

The statement wey announce this success come from two big people for CBN: Director of Banking Supervision, Olubukola Akinwunmi, and Acting Director of Corporate Communications, Hakama Sidi-Ali. Dem write say over the 24-month period, Nigerian banks raise total of N4.65 trillion in new capital, and this one don strengthen the resilience of the financial system.

One important thing wey come out from this na say capital adequacy ratios for banks don improve well well. These ratios now dey above global Basel benchmarks. For those wey no sabi wetin capital adequacy ratio mean, na measure of bank capital wey dem compare with risk-weighted assets. E dey show how strong bank financial position dey.

CBN don set minimum capital adequacy ratios at 10% for regional and national banks, and 15% for banks with international licenses. All these ones dey in line with global standards, meaning say our banks dey compete well with international banks.

The recapitalisation exercise coincide with gradual exit from regulatory forbearance. This one mean say CBN don begin enforce rules more strictly, and this don help improve asset quality and strengthen balance sheet transparency for banks. E don also enhance overall system stability.

To make sure say the gains from this exercise no go disappear, CBN don strengthen their risk-based supervision framework. Dem go dey do periodic stress tests and require banks to maintain adequate capital buffers. Supervisory and prudential guidelines go dey reviewed regularly to improve governance, risk management, and resilience across the banking sector.

Data from National Bureau of Statistics show say foreign capital inflows into banking sector rise by 93.25% year-on-year to $13.53 billion in 2025 from $7.00 billion in 2024. This one reflect strong investor interest during the recapitalisation drive.

But as every good thing get small challenge, Centre for the Promotion of Private Enterprise don caution say despite the strengthened banking system, credit to small businesses remain weak. Dem warn say the benefits of these reforms never fully impact the real economy. Small business owners still dey find am hard to access loans from banks.

For those wey dey wonder which banks don meet the targets, Nairametrics report say all listed banks don make the cut. About 37 banks total wey affected by the capital raise, and 33 don meet the requirements. Some banks wey no meet target don downgrade to lower tier. Unity Bank dey undergo merger with Providus Bank, while Union Bank acquisition by Titan Bank dey under judicial process.

The whole recapitalisation programme begin when CBN first announce am in November 2023, soon after Yemi Cardoso become Governor. Dem formalize the plans in March 2024, and give banks window from April 1, 2024 to March 31, 2026 to conclude the raise. At that time, many people think say the targets too high and nearly impossible to achieve. But look now, 33 banks don scale through.

This kind development na big win for Nigeria financial sector. E show say our banks fit withstand economic shocks and support lending to the real sector. As CBN talk, the successful completion of the programme establish stronger and more resilient banking system wey better positioned to support lending, mobilise savings, and withstand domestic and global shocks.

The journey no easy at all. Banks struggle to raise the money through various means – rights issue, private placements, mergers and acquisitions. But at the end of the day, dem don achieve the target. Naija banking sector don enter new era of resilience and growth.